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Black Gold Bounce Sparks Biggest Short-Squeeze Since Last Fed Stick-Save

Tyler Durden's picture




 

Those that pull the levers did their very best to manufacture the old new normal today from a dead cat bounce in oil prices with an openig short squeeze rip...

As today's rally was led by Homebuilders (Obama proving Einstein correct), Dick's (bigger is better), and JCPenney (magical comps).

But bonds, credit and the USDollar were not playing along.

Stocks bounced back to the cliff edge dive after yesterday's dismal macro data only...

 

Rallying off the 100DMA just like they did on Yellen's big day in December...

 

Who could have seen that coming?

 

 

Energy names clung to green as homebuilders ripped on the Obama FHA premium giveaway bullshit...

 

All driven by the biggest short squeeze in a month... (notice a pattern of the big squeezes)

 

But things decoupled again after Europe closed...

 

as Energy stocks continue to catch down to oil...

 

Treasury yields ended the day unch...

 

The Dollar ended the day higher- once again showing weakness in the US afternoon session...

 

WTI managed to hold on to some gains; silver, gold, and copper flat...

 

Some context for oil's bounce...

 

 

Charts: Bloomberg

 

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Wed, 01/07/2015 - 17:08 | 5634376 StackShinyStuff
StackShinyStuff's picture

"Off the highs"

Wed, 01/07/2015 - 17:10 | 5634393 TideFighter
TideFighter's picture

Concrete cat. Lead-filled. 9th life.

Wed, 01/07/2015 - 17:14 | 5634413 summerof71
summerof71's picture

10 year below 1% by '16!

Wed, 01/07/2015 - 17:26 | 5634465 El Vaquero
El Vaquero's picture

Somebody really needs to introduce Yellen and Bullard to the Queen of Hearts.

Wed, 01/07/2015 - 18:36 | 5634779 El Oregonian
El Oregonian's picture

Long Hope-ium = Short Reality?

Wed, 01/07/2015 - 17:58 | 5634617 Rockatanski
Rockatanski's picture

so you're saying the carsh isnt until after 2016? fuck, this is taking way too long.

 

Wed, 01/07/2015 - 19:09 | 5634865 hobopants
hobopants's picture

Crash already happened in 2008 my friend, we're currently suffering the effects of it. What we're waiting for now is a failure of the government's perception management campaign.

“We can ignore reality, but we cannot ignore the consequences of ignoring reality."

This pretty much sums up what's going on. The worse things get, the better they will try and make them appear.

 

Wed, 01/07/2015 - 17:22 | 5634444 Son of Captain Nemo
Son of Captain Nemo's picture

Concrete cat. Lead-filled. 9th life.

In the shape of a Russian and Chinese Au Hammer right smach dab on pretty Kitty's little head!

Wed, 01/07/2015 - 17:54 | 5634596 Milestones
Milestones's picture

Queen of Spades maybe.              Milestones

Wed, 01/07/2015 - 18:28 | 5634737 El Vaquero
El Vaquero's picture

Queen of spades don't take no stinkin' heads off!

Wed, 01/07/2015 - 18:40 | 5634782 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Remeber the French canceled that Russian Ship contract....just saying... DId Russia hire these guys?

Wed, 01/07/2015 - 17:09 | 5634378 Bunga Bunga
Bunga Bunga's picture

That was a very dead cat bouce. Oil from $110 to $47 and then "bounce" to $49, LOL.

Wed, 01/07/2015 - 17:12 | 5634404 walküre
walküre's picture

If it goes above $50 they will blame the Saudis for "high" oil prices.

Every uptick is getting sold into for now. That's the trend. Oil is not going over $60 anytime soon.

Wed, 01/07/2015 - 17:58 | 5634615 swmnguy
swmnguy's picture

More of a wet thud than a bounce.

Wed, 01/07/2015 - 19:24 | 5634937 HardlyZero
HardlyZero's picture

Brent don't listen, goin' down down down onto WTI.

Wed, 01/07/2015 - 17:11 | 5634396 waterwitch
waterwitch's picture

did someone mention volatility?

Wed, 01/07/2015 - 17:13 | 5634400 PoorMan429
PoorMan429's picture

Those guys in paris were hired guns, not desert trained fanatics. Covering fire, dont look over here. 

 

Wed, 01/07/2015 - 17:22 | 5634443 stant
stant's picture

They need a war and Russia isa bit more than they can chew right now. So this will have to do

Wed, 01/07/2015 - 17:28 | 5634471 PoorMan429
PoorMan429's picture

I think they need a distraction, the main event is around the corner. A few shooting sprees to distract the sheep, since Vlad is playing nice, the cops havent shot any unarmed Negros, ISIS is a dog on downton abbey, and NK is all of a sudden willing to talk. Need a boogieman to make a comeback. 

Wed, 01/07/2015 - 19:05 | 5634872 kowalli
kowalli's picture
Ohio man killed by police officer at Columbus international airport

An airport police officer has fatally shot a man after reported ‘confrontation’ at Columbus international airport in Ohio

Wed, 01/07/2015 - 19:32 | 5634971 TruthInSunshine
TruthInSunshine's picture

Columbus/Toldeo/Akron/Detroit are our Paris's.

Wed, 01/07/2015 - 22:13 | 5635440 Bay of Pigs
Bay of Pigs's picture

You forgot Cleveland...haha.

Wed, 01/07/2015 - 17:15 | 5634409 ebworthen
ebworthen's picture

Like a dirty sock in a washing machine; slish-slosh, float-sink, round and round.

When is the spin dry cycle?

Wed, 01/07/2015 - 19:24 | 5634945 HardlyZero
HardlyZero's picture

We need updated GS swirl-o-gram.

Wed, 01/07/2015 - 17:14 | 5634411 gcjohns1971
gcjohns1971's picture

Exsqueeze me?

Sphincter says what?

That blip in the oil price was just the Fed passing verbal gas.

Wed, 01/07/2015 - 17:15 | 5634414 NoDebt
NoDebt's picture

I like the "short squeeze" photo of the baby.

 

Wed, 01/07/2015 - 17:24 | 5634459 Global Hunter
Global Hunter's picture

and I couldn't figure that one out, haha.

Wed, 01/07/2015 - 17:15 | 5634419 l1b3rty
l1b3rty's picture

Very clearly volatility in oil once suppressed precious metals, but no longer. Gold, silver, bitcoin have remained strong.

Wed, 01/07/2015 - 17:17 | 5634424 wmbz
wmbz's picture

OT:

Did anyone hear Jon Marie Keri, AKA "Lurch" speaking frog to the French?

Good lord what a fucking moron, that doesn't know sit about history!

Full blown douche bag.

Wed, 01/07/2015 - 17:18 | 5634425 thismarketisrigged
thismarketisrigged's picture

This was way too fucking obvious

 

everyone knew this shit was going to happen today. 2 down days in a row ( although yesterday they tried to ramp it back to green at days end as well before closing red, although way off the lows) no way the fed would allow 3 days of moderate losses, so they did what they did best, and that is pump it up.

 

friday they will prob fix the job numbers ( whats new) so we can get back close to 18000 and 2100 again, and then next months job numbers they will leave it as normal ( which means awful) and blame it on the ''polar vortex'' that is effecting most of the nation, and the ''markets'' can go up on that again.

 

its all the same garbage by the same fucking bastards.

Wed, 01/07/2015 - 17:55 | 5634598 arby63
arby63's picture

One may not be able to beat the Fed but the pump becomes more unrealistic with each effort. This is especially so as I witness the reality on Main Street. 

Reality in the "real economy" trumps the Fed printing presses in the end. I just don't see things picking up at all. In fact, I see train wrecks in every sector except for health care, government and financial sectors.

Wed, 01/07/2015 - 18:21 | 5634708 negative rates
negative rates's picture

I get my dinner from a garbage can, Meow.

Wed, 01/07/2015 - 17:18 | 5634433 wrs1
wrs1's picture

A bounce in oil prices?  How did I miss it?  Still looks under $50 to me.

Wed, 01/07/2015 - 17:19 | 5634434 Bell's 2 hearted
Bell's 2 hearted's picture

"As today's rally was led by Homebuilders"

 

i, uh, guess that explains todays mortgage application index for week ending january 2nd.

 

purchase portion down 8% year over year for corresponding week

 

i peeked at corresponding week in 2014 ... down 20% for corresponding week in 2013 

Wed, 01/07/2015 - 17:23 | 5634448 fuu
fuu's picture

What were 2012, 2011, 2010, 2009, and 2008 like?

Wed, 01/07/2015 - 18:23 | 5634720 negative rates
negative rates's picture

They were like 7 years of feast, now for the 7 years of famine.

Wed, 01/07/2015 - 17:24 | 5634460 Rainman
Rainman's picture

Next step is the return of the NINJA

Wed, 01/07/2015 - 17:37 | 5634515 arby63
arby63's picture

Maybe that's why they call it "sentiment." They sentimentally remember the days where everything was free to even dead buyers....

Wed, 01/07/2015 - 17:25 | 5634453 fuu
fuu's picture

Looks like a good week for the TOMO. Another $143B today.$457.811B on the week. Back to October/November levels.

Wed, 01/07/2015 - 17:26 | 5634463 SheepDog-One
SheepDog-One's picture

Everything should be just fine as long as we can have an FOMC vomits every couple of days.

Wed, 01/07/2015 - 17:41 | 5634539 SillySalesmanQu...
SillySalesmanQuestion's picture

After five straight trading days of bloodshed, Old Yellen and FOMC to the rescue.

Forward, onward and upward from here to MOAR all time highs probally....(sigh).

Wed, 01/07/2015 - 17:46 | 5634561 tarsubil
tarsubil's picture

Dick's is the fitness version of Kmart.

Wed, 01/07/2015 - 17:48 | 5634562 surfvin
surfvin's picture

Home builders!? Wtf!? So crahsy

Wed, 01/07/2015 - 17:51 | 5634579 robertocarlos
robertocarlos's picture

Gasoline in Canada is already back to 2 dollars a litre.

Wed, 01/07/2015 - 17:52 | 5634589 Keltner Channel Surf
Keltner Channel Surf's picture

The 'black gold' headline reminded me of the Beverly Hillbillies theme song:

Come and listen to a story ‘bout the U.S. Fed
Poor doves can’t abide seein’ markets in the red
100 MA breached -- thought they’d run out of tools
And out from the wings came the babblin’ fools 

FOMC that is, helped by black gold, a Texas Tea Party 

Wed, 01/07/2015 - 21:45 | 5635354 Proofreder
Proofreder's picture

Nice try, Surfer Guy, but the original version

by Flatt and Scruggs is SO much better ...

https://www.youtube.com/watch?v=kkRkGCm4atE

Wed, 01/07/2015 - 17:59 | 5634621 Counterpunch
Counterpunch's picture

All noise, no signal

 

Themore we get into January, the more people have to spend less on hookers and blow to start paying back credit debt.  That is when, I'll guess, the fucktarded efforts to punish Russia for helping ethnic Russians avoid ethnic cleansing by fascist mercenaries directed by Jewish oligarchs and junta officials will more obviously backfire on the US economy to people who believe that the US economy is healthier than that of Russia or China because we have more people working in fuckin' finance.

 

If you don't understand that money is debt, and that Wall Street and the Fed and the Congress all steal from the future to pay for caviar and bombs now - then you belong over at Krugman's blog.

 

 

Plus Obamacare begins to be unleashed in ways I don't even pretend to understand - I do know that it means increased costs for all but the poor, the old, and the illegal.

Wed, 01/07/2015 - 18:03 | 5634642 Fuku Ben
Fuku Ben's picture

This is feigned market resistance, including the latest "terrorist" attack, are to throw the sheep off the scent of the evil dog that is closing in on them sent by commands from their globalist master

http://weknowmemes.com/wp-content/uploads/2012/03/im-telling-you-the-man...

And speaking of dog I believe this story is the stock market equivalent of 12th Labor of Hercules. Hence, the 12th Labor of Hercules and the 12 allegedly killed in France.

So in that context we should see Cerberus involved somehow. Feel free to post a deep dive into the pit of hell with trading information that confirms a heavy involvement of Cerberus Capital Management. Since Cerberus guards the gate to Hades I would expect CCM to be doing the market equivalent in this action

Wed, 01/07/2015 - 18:04 | 5634646 Barnaby
Barnaby's picture

"What do you call it, like when an unseen force makes something fall for no other explainable reason, isn't that um, a depression?" my neice's words on her blog. Not DAR Scholarship quality, but still pretty um good. Imagine hearing that in an elevator on your way to an interview for a soul-crushing job. 2015!

Wed, 01/07/2015 - 18:18 | 5634694 Fuku Ben
Fuku Ben's picture

I thought it was gravity

Wed, 01/07/2015 - 18:17 | 5634691 quasimodo
quasimodo's picture

I can guarantfuckintee that gas will be 10 cents higher here tomorrow morning, after all every gas station has a direct pipeline to the oil fields, unless oil is going down. 

Wed, 01/07/2015 - 18:28 | 5634741 Rathmullan
Rathmullan's picture

I think the "pain for putin" plan takes precedent here. Oil is headed to $40 until he submits. But you want to be there with the fomc's and primary stealers' family members going long the market the day Vlad says "enough" followed by the the house of saud's cutting production in half.

Wed, 01/07/2015 - 18:32 | 5634757 Manipuflation
Manipuflation's picture

A stick save?  That means cold weather and no one is better than Frankie the Weatherman from Nova Scotia.  I showed this video to Russian Mrs. M and she asked "Where is your special plug".  Little did she know that I actually did have a spare electrical plug in my bug out bag.  I came in and got it and I showed it to her; she could only turn away and bury her face in her arms in laughter.  I got her that time because no one would expect that you might have a spare electrical plug but I DO have one and I have it with me.  Why not, it only costs about $2?  

After fifteen years you would think she would know that I have a spare electrical connection or two or twenty.  To her credit, I never know what she will say but to actually have that plug is a stick save if I ever saw one.          

Wed, 01/07/2015 - 20:01 | 5635081 Nostradumbass
Nostradumbass's picture

Thanks for introducing Weatherman Frankie McDowell from Nova Scotia - a great weather cast if ever I heard one (I watched 3 of his today). Drink lots of green, red and white tea to keep warm! Don't walk too far! And keep thos extra plugs for your battery! 

I thought the plug heater device was to keep the oil from freezing? Batteries too? I'm from so. California, what do I know?

 

Wed, 01/07/2015 - 23:24 | 5635653 Bryan
Bryan's picture

Love Frankie.  :-)  He's got more heart, soul and spirit than a 100 politicians combined.

Wed, 01/07/2015 - 19:10 | 5634892 Billy Shears
Billy Shears's picture

It doesn't matter that the economy of Main St. has been destroyed it is Wall St. Uber Alles.

 

https://www.youtube.com/watch?v=eIqESwzCGg4

Wed, 01/07/2015 - 19:26 | 5634920 HardlyZero
HardlyZero's picture

Dear Janet,

Squeeze it dry, sub-zero NIRP so cold.

 

Lemon Song (Led Zeppelin)

I should have quit you, long time ago.
I wouldn't be here, my children, down on this killin' floor.

I should have listened, baby, to my second mind
Everytime I go away and leave you, darling, you send me the blues way down the line.

Said, people worry I can't keep you satisfied.
Let me tell you baby, you ain't nothin but a two-bit, no-good jive.

Went to sleep last night, worked as hard as I can,
Bring home my money, you take my money, give it to another man.
I should have quit you, baby, such a long time ago.
I wouldn't be here with all my troubles, down on this killing floor.

Squeeze me baby, till the juice runs down my leg.
The way you squeeze my lemon, I'm gonna fall right out of bed.

Wed, 01/07/2015 - 19:49 | 5635023 theyjustcantstop
theyjustcantstop's picture

i would say 900 of morgan-stanleys high end customers just got their oil longs taken care of.

their books look much healthier than pre-hack.

 

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